t's shortage of revenues. The 12 January 1994 devaluation
of Franc Zone currencies by 50% resulted in inflation of 61% in
1994, but inflation has subsided since. Economic reform efforts
continued with the support of international organizations, notably
the World Bank and the IMF. The reform program came to a halt in
June 1997 when civil war erupted. Denis SASSOU-NGUESSO, who returned
to power when the war ended in October 1997, publicly expressed
interest in moving forward on economic reforms and privatization and
in renewing cooperation with international financial institutions.
However, economic progress was badly hurt by slumping oil prices and
the resumption of armed conflict in December 1998, which worsened
the Republic of the Congo's budget deficit. Even with the IMF's
renewed confidence and high world oil prices, Congo is unlikely to
realize growth of more than 5% in 2001-02. With the return to
fragile peace, the IMF approved a $14 million credit in November
2000 to aid post-conflict reconstruction.

Cook Islands:
Like many other South Pacific island nations, the Cook
Islands' economic development is hindered by the isolation of the
country from foreign markets, the limited size of domestic markets,
lack of natural resources, periodic devastation from natural
disasters, and inadequate infrastructure. Agriculture provides the
economic base with major exports made up of copra and citrus fruit.
Manufacturing activities are limited to fruit processing, clothing,
and handicrafts. Trade deficits are made up for by remittances from
emigrants and by foreign aid, overwhelmingly from New Zealand. In
the 1980s and 1990s, the country lived beyond its means, maintaining
a bloated public service and accumulating a large foreign debt.
Subsequent reforms, including the sale of state assets, the
strengthening of economic management, the encouragement of tourism,
and a debt restructuring agreement, have rekindled investment and
growth.

Coral Sea Islands:
no economic activity

Costa Rica:
Costa Rica's basically stable economy depends on
tourism, agriculture, and electronics exports. Poverty has been
substantially reduced over the past 15 years, and a strong social
safety net has been put into place. Foreign investors remain
attracted by the country's political stability and high education
levels, and tourism continues to bring in foreign exchange. Howe